Bank Management 4th Ed.

Description: This introduction to the management of commercial banks should help readers apply financial concepts to a variety of credit, investment, and funding decisions. Coverage focuses on current and future problems faced by banks in a changing regulatory environment, The book demonstrates how the industry, by repositioning and redefining financial products, responds to the changing business environment for banks and related financial institutions. Early, integrated coverage of management tools, including asset/liability management strategies, GAP analysis, and other decision models, serves as an analytical tool for managing interest rate risks. There are also discussions of investment tools and strategies employed by banks, including financial futures, options on futures, interest rate swaps, micro and macro hedging, and municipal bond investments.



Contents: Part I: Overview of the Banking Industry and Regulation. Fundamental Forces of Change in Banking. Bank Organisation and Regulation. Part II: Evaluating Bank Performance. Analysing Bank Performance: Using the UBPR. Alternative Models of Bank Performance. Managing Non-Interest Income and Non- Interest Expense. Part III: Managing Interest Rate Risk. Pricing Fixed-Income Securities. Determinants of Interest Rates. Managing Interest Rate Risk: GAP and Earning Sensitivity. Managing Interest Rate Risk: Duration GAP and Market Value of Equity. Financial Futures, Forward Rate Agreements and Interest Rate Swaps. Options, Caps, Floors, and More Complex Swaps. Part IV: Managing the Cost of Funds, Bank Capital, and Liquidity. Managing Liabilities and the Cost of Funds. The Effective Use of Capital. Liquidity Planning and Managing Cash Assets. Part V: Extending Credit to Businesses and Individuals. Overview of Credit Policy and Loan Characteristics. Evaluating Commercial Loan Requests. Evaluating Consumer Loans. Customer Profitability Analysis and Loan Pricing. Part VI: Managing the Investment Portfolio and Special Topics. The Investment Portfolio and Policy Guidelines. Active Investment Strategies. Global Banking Activities. Financial Institution Mergers and Acquisitions.